Just a quick note to folks out there that hire independent contractors. You should run, not walk, to your nearest web browser and order a copy of Nolo's Consultant and Independent Contractor Agreements book. It comes with a CD with stock contracts, and excellent explanations of each of the clauses within the contracts. I use it at least monthly.
(Those of you who know me know that I had a situation back in the Spring where I thought an independent contractor was trying to get their contracting work for me re-classified as an employee to get benefits after losing his full-time job. In the end, it just turned out to a mistake on his part, and he cleaned everything up. However, I now use this book with every new contractor I hire to be sure that I have good contracts in place up-front. $34.99 well spent!